The commission said five days later that it was also looking into claims that charitable funds had been used to pay private school fees for the daughter of Kids Company founder Camila Batmanghelidjh’s chauffeur.

The commission announced this morning that it had opened an inquiry that "will address concerns about the administration, governance and financial management of the charity, and identify wider lessons for other charities and trustees".

The commission said in a statement it had been in touch with the charity since 17 July and was in contact with "a number of statutory and public agencies, including the Insolvency Service".

The Insolvency Service’s Paul Titherington was yesterday appointed as the official receiver of Kids Company and would be responsible for winding up the charity, a spokesman for the Insolvency Service confirmed this morning.

The receiver’s work will take precedence over the statutory inquiry, the commission’s statement said.

"In light of the intense public scrutiny of and speculation over the charity’s activities, and the increasing number of allegations in the public domain about its governance and financial management, the commission has now formalised its engagement in a statutory inquiry in order to investigate and put on the public record whether or not these allegations are found to be true," it said. "This is in line with the regulator’s duty to promote public trust and confidence in charities."

The commission said that Kids Company’s trustees welcomed the inquiry and had been cooperating.

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